Bond funds refer to funds that specifically invest in bonds. Depending on whether they only invest in bond funds, they are divided into pure bond funds and hybrid bond funds. Hybrid bond funds are further divided into primary bond funds, secondary bond funds, convertible bond funds and

Index bond funds.

Needless to say, pure debt funds are funds that only invest in bonds, including short-term bond funds and medium- and long-term bond funds.

No less than 80% of the assets of the primary debt base should be invested in bonds, and no more than 20% of the assets should be invested in stocks, and they are limited to new stocks.

No less than 80% of the assets of the secondary debt base are invested in bonds, and no more than 20% of the assets are invested in stocks, and stocks can be bought and sold.

Convertible bond funds are funds that specialize in investing in convertible bonds.

Index bond funds are funds that track a bond index.

Therefore, the dynamics of the bond market have a great impact on bond funds.

However, due to the impact of some credit bond thunderstorms, the bond market has experienced large fluctuations, which has had a relatively obvious impact on the net value of related bond funds.

Bond funds are relatively very stable fund types, generally preferred by conservative investors, or used as the fixed income part of investors' asset allocation.

After such fluctuations, Christians became restless. The stability of bond funds was affected. Can they still continue to invest?

In fact, we don’t need to rush to take measures to respond to market changes.

Let’s first understand the protagonist of this incident: The issuer of credit bond interest rate bond is the state or an institution with a credit rating equivalent to that of the state, including national bonds, local government bonds, central bank bills, policy bank bonds (CDB bonds, agricultural

debt issuance), etc.

This type of bond is backed by national credit, and there is usually no need to worry about credit risk. The rise and fall of its price is mainly affected by market interest rates.

Credit bonds Credit bonds are mainly bonds issued by entities other than the government such as companies or enterprises, including corporate bonds, corporate bonds, etc., which are mainly guaranteed by the credit of the company or enterprise. Therefore, the credit risk of credit bonds is higher than that of interest rate bonds.

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Credit risk, also called default risk, refers to the possibility that a bond issuer cannot repay principal and interest as agreed, causing losses to investors.

An example of a bond default event is that Yongmei's bonds were unable to repay principal and interest when due as agreed, which led to significant fluctuations in the bond market.

Although the net value of bond funds has declined to a certain extent due to the default of credit bonds, for us ordinary investors, bond funds are still investments with a relatively low risk coefficient.

There are two main reasons.

First, there is an investment research team behind a bond fund. Behind a bond fund is not only the fund manager, but also the entire fixed-income investment research team.

The investment research team will adjust investment varieties and respond to market risks based on market conditions, combined with monetary policy and macroeconomic conditions.

Second, the investment threshold for bond funds is low. As we all know, the investment threshold for public funds is very low. An ordinary one-time investment is as low as 100 yuan. If you choose fixed investment, the investment threshold is even as low as 1 yuan for some varieties.

Therefore, the investment threshold for bond funds is very low, and bond investment requires very low investment experience for investors.

Different investment targets have different risk coefficients. When choosing to invest in a certain fund, you can carefully read the fund's prospectus, which has very detailed instructions on the fund's risk level, investment direction, etc.